Amazon FBA Profit Calculator
How to Calculate Amazon FBA Profits Accurately
Selling on Amazon Fulfillment by Amazon (FBA) involves more than just subtracting your product cost from the selling price. To find your true "Take Home" pay, you must account for several layers of Amazon-specific fees.
Net Profit = Selling Price – (COGS + Shipping to Amazon + Referral Fee + FBA Fulfillment Fee + Monthly Storage)
Understanding the Key Inputs
1. COGS (Cost of Goods Sold): This is the manufacturing or wholesale price you pay for the product itself. Always include any factory inspection fees or packaging costs here.
2. Amazon Referral Fee: This is essentially a commission. For most categories (like Home, Kitchen, and Electronics), it is roughly 15% of the total selling price. Some categories like Clothing or Jewelry may differ.
3. FBA Fulfillment Fee: This covers the picking, packing, and shipping of your order to the customer. This is determined by the weight and dimensions of your product. Oversized items significantly increase this cost.
4. Monthly Storage: Amazon charges you to keep products in their warehouses. This fee fluctuates based on the time of year; it is notably higher during the Q4 holiday season (October–December).
Example Calculation
Imagine you sell a Yoga Mat for $40.00. Your costs are:
- Product Cost: $10.00
- Shipping to Warehouse: $2.00
- Referral Fee (15%): $6.00
- FBA Fee: $7.50
- Storage: $0.50
Your total expenses would be $26.00. Your Net Profit is $14.00. This results in a 35% Profit Margin and a 140% ROI (Return on Investment).